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Steven Parker owns and operates Steven's Septic Service and Legal Advice. Steven's two revenue generating (production) operations are supported by two service departments: Clerical and

Steven Parker owns and operates Steven's Septic Service and Legal Advice. Steven's two revenue generating (production) operations are supported by two service departments: Clerical and Janitorial. Costs in the service departments are allocated in the following order using the designated allocation bases:

Clerical:

Variable cost: expected number of work orders processed

Fixed cost: long-run average number of work orders processed

Janitorial:

Variable cost: labor hours

Fixed cost: square footage of space occupied

Average and expected activity levels for next month (June) are as follows:

Number of Work Orders
Expected Average Labor Hours Square Footage
Septic Service 50 80 560 1,800
Legal advice 25 20 840 2,200
Clerical 20 20 400 1,600
Janitorial 5 20 200 1,000

Expected costs in the service departments for June are as follows:

Clerical Janitorial
Variable costs $ 12,000 $ 4,200
Fixed costs $ 8,400 $ 800

Under the step method of allocation, how much Clerical Service cost should be allocated to the Septic Service operation for June? (Assume Clerical costs are allocated before Janitorial costs.).

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